Impero releases 2023-Q3 Report: Achieved 38% growth in ARR (YoY). For the first three quarters of the year, revenue increased by 41% while capacity costs decreased by 1%

Company Announcement No. 11-2023

Copenhagen, 14 November 2023

At the end of 2023-Q3, Impero realized a 38% year-on-year Annual Recurring Revenue (ARR) growth rate and continued to demonstrate solid SaaS metrics. Revenue for the first three quarters of 2023 increased by 41%, while capacity costs (other external expenses and staff costs) decreased by 1%, contributing to the planned improvement in EBITDA and lower cash-burn from operations. Impero maintains guidance for the full year of 2023, with ARR within the DKK 29M to 33M range and EBITDA expected within the DKK -13M to -11M range.

Financial highlights on 30 September 2023

• ARR increased by 38% to DKK 28.1M, from DKK 20.4M on 30 September 2022
• Net ARR growth for Q3-2023 YTD of DKK 5.5M, compared to DKK 3.8M in Q3-2022 YTD
• Uplift was 19% YoY, compared to 15% in the 12-month period ending 30 September 2022
• Churn was 6% YoY compared to 2% in the 12-month period ending 30 September 2022
• Net Revenue Retention was 113%, the same level as in the 12-month period ending 30 September 2022
• Revenue for Q3-2023 YTD increased by 41% to DKK 19.9M, compared to the same period in 2022
• EBITDA for Q3-2023 YTD was negative DKK 9.4M, compared to negative DKK 14.9M for the same period in 2022

With ARR growth of 38% YoY, low churn, and strong uplift from existing customers, Impero maintained solid metrics at the end of the third quarter. We see compelling interest in our existing markets and were pleased to welcome several new customers from Denmark, Germany, and Sweden.

After a period with an extraordinarily low churn, the level has increased to 6% YoY, which is still considered low. Churn for the full year is projected to reach 8%, before we expect a decrease in the following periods. The potential to expand current customers remains strong.

While we still see longer decision times from potential customers, we anticipate performance in 2023-Q4 in line with our expectations.

As communicated in our 2023-H1 report, the EU’s Corporate Sustainability Reporting Directive (CSRD) has crystalized the importance of ESG reporting processes for many companies. Working with KPMG Denmark, we have updated our product offering to address companies’ requirements for robust reporting processes that are up to date with the latest guidance from the EU.

Conversations with existing and potential customers confirm the need for reliable reporting processes. Treating ESG data as financial data will continue to increase into the future, and Impero remains a natural fit as companies do so.

At the same time, we continue to see interest in our templated solution for tax compliance management offered in partnership with KPMG Germany, as well as the templated solution for financial compliance developed in collaboration with Basico, a leading Nordic consulting firm within the CFO domain. With the templated solutions, we build on the strong platform we already have - while opening up for wider opportunities in the market.

“I am pleased with our improved cash efficiency, which shows our ability to scale commercial reach with our current foundation. We continue to onboard large corporations, and simultaneously increase our focus on templated solutions as we strive to help even more companies embrace the opportunities that come with being compliant. That is our contribution to increase trust – a global currency that cannot be devalued,” says CEO Rikke Stampe Skov.

Organization

While we agreed to part ways with our former Chief Sales Officer Giuseppe Geresia in 2023-Q3, we retain strong sales leadership in our key regions.

During 2023-Q3 we were pleased to welcome key hires to our Product and Commercial teams who bring strategic competencies that we believe will strengthen Impero’s ability to attract and retain customers.

Capital

Impero continues to lower cash-burn from ordinary and investing activities compared to net new ARR generated, with the aim of improving this ratio even further towards the end of the year.

Impero ends 2023-Q3 with a cash position of DKK 7.8M, and as reflected by the ongoing improvement in cash-flow from operating activities, Impero maintains the flexibility to continue with current funding.

With reference to the 2023-H1 report, Impero has been evaluating its funding needs for additional investments to support continued high growth rates and will in the near term explore the possibility of completing a directed issue at market price with gross proceeds of up to DKK 10M (with the option for the Board of Directors to increase this amount with DKK 4M). A capital raise will be used to further invest in the platform and fuel commercial activities.

Financial guidance

Impero maintains the outlook for 2023 with ARR in the range of DKK 29M to 33M by the end of 2023. The ARR outlook corresponds to growth rates between 28% and 46%. Impero will continue to invest in scaling the organization to ensure long-term ARR growth and at the same time focus on lowering the cash-burn. EBITDA for 2023 is expected to be in the range of DKK -13M to -11M.

Read the Report in its entirety via Impero.com/investors or in the attached.

CEO Rikke Stampe Skov and CFO Morten Lehmann Nielsen will present the Q3 Report at a webinar on 14 November 2023, at 11:00 AM CET.

Register for the webinar via: inderes.dk/videos/impero-praesentation-af-q3-2023